Bazil Bilal

fa18-bba-157
Section B

Question:1
Answer:
It appears that Carlos Ghosn did much to cut Nissan’s costs and increase efficiency. If this
continues to be Nissan’s strategy, the international HRM strategy should fit that.i recommend the
nissan’s to continue their cost reduction strategy .For example, Nissan should first identify
whether a parent country, host country, or third country national staffing strategy is best.

The HRM Strategies applied on the situation

A successive strategy that Nissan can opt is to introduce hiring of employees from all around the
glob. This will boost diversification in the organization and and may be helpful in selecting an
expatriate from the organization that be sent as an expatriate as may be a person working in
Japan for Nissan have been hired from Pakistan and with the time he setteled himself in Japanese
culture he was appointed as an assistant to marketing manager but now he has become enough
efficient to work as a marketing manager so if Nissan wants some marketing to manger to
conduct research on Pakistan they would surely be analyzing that employee who had been
employeed at a low position form Pakistan and now he is enough effiecient and is well aware of
both regions and obviously if he is working in company for so long he would be totally upto the
mark with conceptual and technical skills required by the organization. This kind of expatriate
would be a good decision for the company.
The failure of expatriate
There can be various category reasons in failure of an epxtriats in particular it can be personal for
example a demotivational behavior of an individual, deprivation of skills and an irrelevant
behavior of an individual can assure the failure of expatriate. Instead of that other reasons like
the members of family who been having an influence of the expatriate in case the efficient
working and adjustment of an expatriate is way far dependent on his family’s stability in the
foreign region. The two major factors that may also lead to the arousal of above mentioned two
reason of failure are cultural adaptation and alignment with organization. Cultural factor includes
various hurdles my communication gaps, lack of interpersonal relations, whereas in problems
regarding organizational alignment the organization sometimes consider the person appointed as
expatriate as an extra efficient individual who may not be like that and due to this certain flaw in
a decision of selecting right person with right job may cause difficulties for the individual to
manage such tasks.
If we consider the actions performed by Mr Carlos Ghosn we may elaborate that he worked on
operational sector of the organization and played an eminent role in intensifying the efficiency
and practiced an effective change management in introducing new products in Asia as company
when ever faces huge loss it most probably means its desperate for a change. To avoid the
Failure
The management must seek for the best possible employee who later on carries with all sort of
issues. The failure can be avoided if the management looks for the interpersonal skills of the
expatriate. If they are motivated for the assignment, there families must be ready to live in
another country. The basic part is to check whether the employee is capable of taking foreighn
assignment and could manage it nicely. There must be professionalism in the employee to
manage situations. Responsibility should be taken seriously. This may help in avoiding the
failure of expatriates.
Evaluation of the performance of employee posted Abroad
As the employee is now selected for foreign assignment, the management will now evaluate the
performance of the employee. The management needs to measure the performance with
appropriate criteria. The basic challenges faced by them will be taken while performance
appraisal. As of how they managed the international operation in the multinational, how well the
cope up with the unreliable data, how well they managed to live in the harsh enviournments, to
live with a time and distance separation, the cultural shock. Every other challenge is given and
then the performance is measured on how well they manage to fulfill the challenges.

Specific Human Resource Strategies

 Nissan may like to enlist parent country nationals in the event that it needs to keep solid
power foreign operations and tasks and individual properties. It might pick have country
nationals where nearby associations and relations are basic to progress and success, or
where local connections and relationships underscore downstream value chain exercises,
like advertising and marketing. Nissan may incline toward third nation nationals in the
event that they wish to make a worldwide culture among global tasks
 To develop global managers, Nissan should cultivate a geocentric orientation and a
global mindset by recruiting employees from diverse backgrounds who will bring a
 holistic perspective to decision-making on the firm's worldwide operations. Top
management would then hire, develop, and nurture employees who possess a global
mindset and offer global leadership potential. Nissan management would provide cross-
cultural awareness training, experience is for employees to learn host country languages,
short-term projects in host countries, and be exposed to solving problems and worldwide
operations. All of this would increase employees cultural intelligence, or at their
capability to function effectively in diverse situations

Question: 2
Answer:
There are market-seeking motives, which explain why a small firm needs to gain access to new
markets and opportunities.  Efficiency seeking motives involve a firm entering a country with
high trade restrictions:  the firm would want to avoid these trade barriers by manufacturing in
country rather than exporting. Also a part of efficiency seeking motives, a firm with high
production costs may seeks to reduce sourcing and manufacturing costs by producing in country.
A large diversified firm with various reasons for internationalization would expand into various
markets for market seeking motives, efficiency seeking motives, and asset seeking motives.
FDI :

Foreign Direct Investment is an investment by an organization i.e. an investor in a business of

another country for which that investor has right to control the purchased portion of the
company. Control means owning 12% or more of the business firm and it is defined by OECD
countries.

For a small firm whose sales are dwindling in home market has various advantages in first stage
of FDI in their business.

1) FDI is an important source of increased revenue and external capital that can lead economic
development of that country. Sometimes domestic capital is not sufficient for home country to
bring economic growth. So at that time external capital is needed to achieve economic growth.

2) FDI can increase productive efficiency of that firm as it increase the competition. Now the
firm can ready to face competition in foreign market.
3) Saving an investment increases in the market that will help the firm in future.

Motive of the foreign firm for entering into another market:

Trade barriers prevent many foreign firms from entering in another market where there may be
high consumer base. Firms cannot sell their goods in those markets because of huge tariffs or
quotas. After paying tariffs there is no chance to get high profits from trading with that country.
FDI can remove that barrier and make those markets open for all.

High manufacturing cost:

The motive of welcoming FDI in home country is it decreases the cost of production for firm.
Due to high manufacturing cost firms are forced to sell products at a high price that
automatically decreases the total revenue as well as the profit of the firm.

Hotel Chains:

Tourism is another big industry for any country. FDI in this sector can improve those tourist
spots that can attract tourist from various places. So the revenue coming from this sector has
significant effect on the employment opportunities of that sector. Hotel business in this sector
will improve due to arrivals of tourists.

Reasons behind entering another country for big firms:

1) In new market or new country big firms can get many advantages like availability of cheap
labor. In this type of countries labors are not aware of the proper wage rate in the foreign country
due to trade barriers. So big firms have advantages to hire them and firms will get the same
services at a cheaper rate.
2) Big firms can get better market for selling their product at a cheaper rate. In home country due
to high trade barrier people are forced to buy home products at a higher rate. When big firms
enter into the market they can sell that products at a lower rate and can capture the whole market.

3) Availability of raw materials at a cheaper rate is one of the important reasons for big firms to
enter into the market.

Case for question: 3 (Part a & b)

Question 3:
a) The basic reason if we try to look at broader perspective in terms of Politics in Pakistan and
PIA. We can defentily then understand why the management is facing so much resisstance in
bringing a change. The old management was very much use to the same rules and making
money out of the allocated budget of PIA. Many in regard to the statement of Minister of
Aviation, there were employee who didn’t even know how to fly and got a job. This shows
that there is deep rooted corruption which is a resistance to the change and the old
management doesn’t want to leave PIA because they think that they are the ones who can
save. The recommendation to the chief will be to focus on the quality and sustainability in
the management. There are many things which we look forward as to bring change in PIA
which can then compete with other Airlines. Following the footsteps of betterment, PIA
decided to lay off half of the employees recently and replace them. To make better profit,
they also permanently closed the routes which were giving loss. Its first time in a decade that
they are trying to do this. The PIA isn’t following any airline in competition but they are
competing with themselves to do better than the previous times, just to bring back that PIA
which made Emirates. The changes are coming as it takes time to build a new house again or
even renovating it. Such is with PIA.
Expansion in networks, hospitality, Flight timings, accountability in operations must be taken
seriously so to maintain them.
PIA is beaurocratic organization and all these organization which are beaurocratic the cover
change from root level to top level in the world. So the main problem is company try to
change management but they face resistance the people who are in the organization want
current state they do not want change in the organization. So the company hired the people in
upper level to convince the people for acceptance change in the organization. And company
teached them the company is going down day by day in term of profit in term of revenues as
well as in marketing and in term of brand name in ASIA and they realized. They face
resistance in the organization because they implement change immediately so I will
recommend the newly appointed CEO hire the upper level management to convince the
people who are working in the PIA the organization going down day by day in term of
profit, marketing and brand image in other countries many countries banned the entery of
PIA so the worker can accept the transition state and as well as CEO should implement the
change step by step not immediately they should try to change the behavior because refusal
state is very worse.
B) The company should in my point of view,focus on the management and maintaining the
changes will help them grow in central asia. However, the company is facing a lot of
competition in Central Asia in terms of policies and flying packages. According to the case
study, if we take a look at the management decisions, they need to revise the strategy and
positioning. The major competitiors in terms of Central asia for PIA are Gulf airways and
Emirates. To maintain the changes brought by CEO PIA, the lower management must work
accordingly in order to bring different options for expansion. They need to look at the
changes aswell around which the new way of life with COVID-19 got. There must be young
professionals to bring the change in previous system. Already as in case study we read, the
brand manager has come up with certain alliances with small airlines in Central Asia.
Join venture would help them in designing new ways how to carry the airline and
management. It would bring investors more and they can attract the customer as well.
looking at the current world, since this pandemic hit the world people around the world have
realised how frustrating it is to sit around all day inside our homes. Now, people, including
Pakistanis, have realised how important it is for our mental and physical health to go out and
explore. Many Pakistanis residing in Pakistan have started to go out and seek the world them.
because of this opportunity, many people have started to visit the countries that are cost
 friendly and near to them. These includes countries like Uzbekistan, Tajikistan, and other
cheap but beautiful central Asian counties.
Looking at this excellent opportunity, PIA can expand its destinations by offering low cost
travel to these countries. Now the problem arises that not many people are willing to travel
with PIA because of its well-known history and condition of airplanes and its service. Since
PIA is trying to get back to its position it once held around the globe for its service, what PIA
can do for now is join with other central Asian airlines and start a joint venture. There can be
many benefits and losses in this type of joining of two companies.
Advantages include getting the best and first-hand knowledge about the places of tourism
from the local partner. They can help PIA with the knowledge of their country and also
promote tourism in their county as well. This is going to be a big step that is why there is
going to be a bigger risk attached to it. This shouldn’t be a problem as the risk will be shared
equally with both companies. If this joint-venture turned out to be a successful plan, then the
benefits will also be shared equally. It will also greatly increase the capacity of PIA and
improve its rating in the market. New staff will be available to both the parties as both will be
expert in their respective fields and areas. But as it is said that not everything glitters is gold,
there do exist some disadvantages to the joint venture program. Problems can arise if the
objectives of the venture are not clear or if there are no communications between the two or
more parties involved in the venture. The expertise level can and will differ as either of the
partners can be more expert in the field.
Given all the arguments, in my opinion, it would be in favour of PIA to form a Joint-Venture
with some well-known and well-established airline within the Central-Asian country.

Question :4
Answer:
Advertisement is an attempt at imagination which impacts the purchaser's thought process to
purchase a specific item and change or make the impression of the item in the psyche of the
buyers. Advertisement appeal act as a supplier to stir the mental thought process of the purchaser
for purchasing. Advertisement includes rational and emotional offers. In rational appeals the
product can be emphasized mainly on its benefits and the problems which it can solve while on
the other hand emotional appeal meet the consumer’s psychological, emotional and social
requirements. They believed that culture exceptionally impact the purchasing practices of
individuals on the peoples that each individual has various needs and patterns as per their ways
of life. hus if we say that advertisement is like a magic than it will not be false because
advertisement actually changes the needs and wants of the people and sometimes it creates the
need among the people. Individuals are exceptionally influenced by the advertisement and
organization as they are attempting to focus on the majority of individuals. Organizations are
using above the line and below the line techniques of the advertisement which fit best with their
products. Researchers have found that media advertisement are most popular advertisements and
people like television ads, news paper ads, ad campaigns so it is a suitable medium to advertise
the products of the common peoples.
As mentioned earlier, consumer buying pattern is directly evolved from the consumer behavior
and its attitude.Many things combine to build up the behavior of any individual. The first thing
which influences the consumerbehavior and shapes it is his culture. Culture builds the strong
perceptions of the products in the mind of the customers (hye-Shin Kim, 2008). According to
Rai, 2013, there are several national and international brands which people recognized and have
strong perception in their minds. These perceptions are pinched in their mind because of their
culture, life styles and surroundings. Also advertisements have very important role in shaping
the consumer behavior. Advertisements are the source of motivation which forces them to buy a
particular product. Advertisements are also a source of building trust. Consumer is induced
significantly if he is looking for the quality and prices of the products. Purchase attitude can also
be build up by product evaluation and brand recognition (Rai, 2013). Consumers in all over the
world are attracted towards the brand and products which are emotionally attached with their
behaviors. Studies found that emotional attachments put a huge influence on the customers and
their buying behavior as people tend to associate themselves with the brand. Advertisements
shape the behaviors of the people through cognition. Cognition is the perception of a person
towards the information communicated through advertisements. These cognitions are observed
by the individual through his senses, perception, attention, memory, reasoning, language, etc.
best way of attracting the customers is to understand the psychological cognitive aspects of the
consumers.